Proposal to Import Coal for Neyveli Lignite's Project in UP: Report

New Delhi: There is a proposal to import coal for Neyveli Lignite Corporation's Rs 14,375-crore thermal power project in Uttar Pradesh due to delays in development of mine allocated for the plant.

"Pachwara South coal block was specifically allocated for Ghatampur thermal power project on July 25, 2013. This has not been deallocated till date.

"Since there was delay in development of this coal block, it is proposed to use imported coal for this project, till such time the coal block is developed," an official said.

The official further said that coal import will be through MoU with MSTC. Neyveli Lignite Corp (NLC) had signed an pact with Uttar Pradesh government in 2010 to set up 1980-MW thermal power plant in joint venture with UP Rajya Vidyut Utapadan Nigam Ltd (UPRVUNL).

The joint venture agreement was signed between NLC and UPRVUNL in October 2012 and the JV company was formed in November 2012.

"Public Investment Board recommended the project at an estimated Rs 14,375 crore... land acquisition activities... is nearing completion," the official said.

Neyveli Lignite Corp had last year invited global firms for providing consultancy for the power project.